The folks behind the popular iPhone jailbreaking application â€“ PwnageTool have released a video which shows a demo of a jailbroken iOS4.1 running on an iPod Touch 4G. This new jailbreak technique is based on the â€˜SHAtterâ€™ exploit.

Along with the iOS 4.1 update for the iTouch devices, Steve also gave a sneak peek into the upcoming iOS 4.2. The iOS 4.2 update is meant only for the iPad and brings with it all the features which the iOS 4 brought with it to the iTouch platform.

Apple has just rolled out the iOS 4.1 update for its iTouch devices. The iOS4.1 update fixes tons of bugs present in the iOS4 including the popular Proximity sensor bug on the iPhone 4, Bluetooth bugs and performance issues on the iPhone 3G.

The Apple iPhone 4 allows its users to make video calls over Wi-Fi to any iPhone 4 owner. At the time of the launch of the iPhone 4, Apple dubbed this technology as FaceTime and called it â€œrevolutionaryâ€.